MPC raises concerns about fluctuating global environment
Governor Lesetja Kganyago agreed that this uncertainty may present material risks.
- South African Reserve Bank (SARB)
- South African Reserve Bank Governor Lesetja Kganyago
- Monetary Police Committee (MPC)
FILE: South African Reserve Bank. Picture: supplied
JOHANNESBURG - The South African Reserve Bank (SARB)'s monetary policy committee said it remained concerned about the fluctuating global environment.
Governor Lesetja Kganyago agreed that this uncertainty may present material risks.
Kganyago on Thursday afternoon announced a repo rate cut of 25 basis points to 7.5%.
However, two members of the committee preferred an unchanged stance.
Addressing a media briefing in Johannesburg, Kganyago highlighted the other concerning issues.
"The trade measures that would be taken could have an impact on global trade, would have an impact on inflation. With that happening, global financial conditions will remain tighter for longer, and if they are tighter for longer, it has got implications for capital flows to emerging markets, and for a small open economy like South Africa, it will not just fit through the capital flows but will also come through the exchange rates, and a combination of all of those would affect economic activity in South Africa, and would affect inflation outcomes."